After the red hot success of the first two systems, Sony went into the PlayStation 3 with an inflated ego and a $600 price tag. The bloated, over-designed, and needlessly difficult to program for nightmare that Sony arrogantly insisted you work two jobs for, destroyed the company's reputation and momentum in the console market, and with an initial lack of games to justify the tech, Sony had a hard time selling PS3s as they were regularly getting their ass handed to them by both Microsoft's Xbox 360 and especially Nintendo's Wii. They eventually turned ship around later in the system's life, but it's hard to deny that the first 3 or so years of the PS3 were a rough ride for PlayStation fans.
Now Sony is back on top with the PlayStation 4. Being an affordable, simple, and focused product that righted every wrong of the PlayStation 3, and took advantage of the floundering Nintendo and Microsoft, to dominate the console race for much of the generation. Now, we're nearing the end of the system's main life cycle (It'll still get supported years after PS5), and that dominance Sony held on to for the 8th gen is slipping. Microsoft has cleaned house on management, and has slowly turned the Xbox One into a solid product with a lot of great games. And Nintendo is back in the spotlight with the Switch, regularly selling on par with, and in many cases beating the PS4 each month in the US.
There are signs that Sony is starting to get cocky with their success with the PS4. First with new SIE management implimenting new puritanical content guidelines for Japanese developers, and now with rumors of the PS5 being $500, which while not as bad as the $600 monstrosity of the PS3, is still too expensive for a gaming platform. With this I'm worried Sony is going to end up right back at square one with the PS5, a disasterous reveal and launch that fails to make a splash. And if Sony doesn't play their cards right, developers could very well distance themselves from the PS5 and put more focus on the Xbox Scarlett and even the Switch to an extent. I don't want this to be the case, and neither do you, so I'm hoping Sony makes it out alright in the end, but I am a bit worried about the PS5 at this point. It may not be as bad as the early PS3 days, but it could very well be a disaster if Sony doesn't put their best foot forward, especially now that their contemporaries aren't as incompetent now as they used to be.